BILL NUMBER: AB 2229	CHAPTERED  09/24/00

	CHAPTER   606
	FILED WITH SECRETARY OF STATE   SEPTEMBER 24, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 23, 2000
	PASSED THE ASSEMBLY   AUGUST 31, 2000
	PASSED THE SENATE   AUGUST 30, 2000
	AMENDED IN SENATE   AUGUST 25, 2000
	AMENDED IN SENATE   AUGUST 10, 2000
	AMENDED IN ASSEMBLY   MAY 1, 2000

INTRODUCED BY   Assembly Member Wiggins

                        FEBRUARY 24, 2000

   An act to amend Sections 3695.4, 3695.5, 3700, 3791.4, 3793.1,
3795, and 3795.5 of, and to repeal Sections 3793.5, 3793.6, 3794.2,
3807.3, and 3807.5 of, the Revenue and Taxation Code, relating to
taxation.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2229, Wiggins.  Property taxation:  sale of defaulted property.

   Existing property tax law generally authorizes a county tax
collector to sell tax-defaulted property 5 years or more after that
property has become tax defaulted, and also authorizes a public
agency, as provided, or a nonprofit organization, making certain
written statements regarding the rehabilitation and use of property
for low-income persons, to file a written objection to a proposed
sale of tax-defaulted property.  Existing law requires any written
objection that is so filed to be accompanied by an application to
purchase the property otherwise subject to sale.  Existing law allows
the sale of tax-defaulted property to proceed despite the filing of
an objection and application by a public agency, and requires that a
nonprofit organization file an objection and application prior to the
date of sale.
   This bill would revise and recast these objection and application
provisions to prohibit a sale of tax-defaulted property after the
filing of an objection and application by a public agency, and to
require that a nonprofit organization file an objection and
application to a sale of tax-defaulted property before the giving of
notice of sale under a specified statute.  This bill would  permit a
county tax collector to provide a copy of a notice of a proposed sale
of tax-defaulted property to each nonprofit organization that has
submitted, as provided, a written request for that notice.  This bill
would require a county board of supervisors or its designee to
approve the purchase of tax-defaulted property by a nonprofit
organization and would, subject to that approval, allow property to
be purchased by a nonprofit organization after the property has been
tax defaulted for at least 3 years and has become the subject of a
nuisance abatement lien.  This bill would delete the requirement that
an agreement for the sale of tax-defaulted property to a nonprofit
organization require that organization to meet conditions with regard
to the rehabilitation and use of the property within 2 years, or a
longer period as extended by the county board of supervisors.  This
bill would, in lieu of conditions as may be imposed by the
Controller, permit the county board of supervisors to establish
additional conditions, as provided, upon the sale of tax-defaulted
property to a nonprofit organization.  This bill would, in the case
in which a sale of tax-defaulted property fails to attract an
acceptable bid, allow the county tax collector, with the approval of
the county board of supervisors or its designee, to offer the
property at a new minimum price at the same sale, rather than the
next scheduled sale.  This bill would also allow a county board of
supervisors, or its designee, to permit a nonprofit organization to
purchase tax-defaulted property on an installment basis.  This bill
would also clarify the manner in which an executed agreement for the
sale of tax-defaulted property is to be submitted to, and reviewed
by, the Controller, and would eliminate provisions including those
relating to the resale of tax-defaulted property by a purchasing
public agency and a taxing agency's recovery of its costs.  By
imposing additional duties on county tax collectors and boards of
supervisors with respect to the sale of tax-defaulted properties,
this bill would impose a state-mandated local program.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 3695.4 of the Revenue and Taxation Code is
amended to read:
   3695.4.  In addition to the provisions in Section 3695 relative to
objections to sales, the state or city or any taxing agency or
revenue district may file with the county tax collector written
objection to the sale of, along with an application to purchase in
accordance with Chapter 8 (commencing with Section 3771), any
property that is or may be needed for public use.  The written
objection shall specify the description of the property needed,
whether the fee or an easement is required, and the public purpose to
which the property is intended to be devoted.
   The objection and application shall be filed with the tax
collector before the date of the first publication of the notice of
intended sale pursuant to Sections 3702 and 3703.  If the state, a
city, taxing agency, or revenue district files an objection and
application in compliance with this section, the tax collector may
not proceed with the sale of the subject property.
  SEC. 2.  Section 3695.5 of the Revenue and Taxation Code is amended
to read:
   3695.5.  In addition to the provisions of Sections 3695 and 3695.4
relative to objections to sales, any nonprofit organization may file
with the county tax collector written objection to the sale for
taxes of, and a written application to purchase in accordance with
Chapter 8 (commencing with Section 3771), any residential or vacant
real property that the nonprofit organization states in writing that
it will:
   (a) In the case of residential real property, rehabilitate and
sell or rent to, or otherwise use the property to serve, low-income
persons.
   (b) In the case of vacant real property, construct residential
dwellings on the property and sell or rent the property to low-income
persons, otherwise use the property to serve low-income persons, or
dedicate the vacant property to public use, including those uses
referred to in subdivision (a).
   The objection and application shall be filed with the tax
collector before the date of the first publication or posting of the
notice of intended sale pursuant to Sections 3702 and 3703.  If the
nonprofit organization files an objection and application in
compliance with this section and with any conditions of sale
established pursuant to Section 3795.5, the tax collector may not
proceed with the sale of the property.
   The terms "nonprofit organization," "low-income persons" and
"rehabilitation" shall have the same meaning in this section as in
Chapter 8 (commencing with Section 3771).
  SEC. 3.  Section 3700 of the Revenue and Taxation Code is amended
to read:
   3700.  Upon providing notice to the board of supervisors as
required by Section 3698, the tax collector shall forward one copy to
the clerk or secretary of the governing board of each taxing agency,
other than the county, having the right to levy taxes or assessments
on the property and may forward one copy to each nonprofit
organization that has submitted, within one year prior to the next
scheduled tax sale or prior to July 31 of the current calendar year,
a written request to the tax collector for notification.  The copy or
copies shall be mailed or delivered at least 30 days before the
first publication or posting of the notice of intended sale.
However, where the tax collector has on file a consent from each
taxing agency, the tax collector may proceed to publish or post the
notice of sale.
  SEC. 4.  Section 3791.4 of the Revenue and Taxation Code is amended
to read:
   3791.4.  (a) When residential or vacant property has been tax
defaulted for five years or more, or three years or more after the
property has become tax-defaulted and is subject to a nuisance
abatement lien, that property may, with the approval of either the
board of supervisors of the county in which it is located or that
board's designee, be purchased pursuant to this chapter by a
nonprofit organization, provided that:
   (1) In the case of residential property, the nonprofit
organization shall rehabilitate and sell or rent to, or otherwise use
the property to serve, low-income persons.
   (2) In the case of vacant property, the nonprofit organization
shall construct residential dwellings on the property and sell or
rent the property to low-income persons, otherwise use the property
to serve low-income persons, or dedicate the vacant property to
public use.
   (b) The terms and conditions of any conveyance to a nonprofit
corporation pursuant to this section shall be specified in the deed
or other instrument of conveyance.
  SEC. 5.  Section 3793.1 of the Revenue and Taxation Code is amended
to read:
   3793.1.  (a) The sales price of any property sold under this
article shall include, at a minimum, the amounts of all of the
following:
   (1) All defaulted taxes and assessments, and all associated
penalties and costs.
   (2) Redemption penalties and fees incurred through the month of
the sale.
   (3) All costs of the sale.
   (b) If the property or property interests have been offered for
sale at least once and no acceptable bids therefor have been
received, the tax collector may, in his or her discretion and with
the approval of the board of supervisors or that board's designee,
offer that property or those interests at a minimum price that the
tax collector deems appropriate.
   (c) The board of supervisors, or its designee, may permit a
nonprofit organization to purchase property or property interests by
way of installment payments.
  SEC. 6.  Section 3793.5 of the Revenue and Taxation Code is
repealed.
  SEC. 7.  Section 3793.6 of the Revenue and Taxation Code is
repealed.
  SEC. 8.  Section 3794.2 of the Revenue and Taxation Code is
repealed.
  SEC. 9.  Section 3795 of the Revenue and Taxation Code is amended
to read:
   3795.  The agreement shall be submitted to the Controller.  If he
or she does not approve the agreement, he or she shall return the
agreement to each party with a statement of his or her objections to
it, and thereafter a new or modified agreement may be made.  If the
Controller approves the agreement, he or she shall sign the executed
copy, return the signed agreement to the tax collector, and keep a
copy on file in his or her office.
  SEC. 10.  Section 3795.5 of the Revenue and Taxation Code is
amended to read:
   3795.5.  In the case of an agreement involving a nonprofit
organization, the board of supervisors may establish conditions of
sale, including reporting, to assure the completion of rehabilitation
within a reasonable time and maximum benefit to low-income persons.
These conditions shall include, but are not limited to, all of the
following:
   (a) Requiring a certification of consistency with a consolidated
plan approved by the Department of Housing and Community Development.

   (b) Requiring compliance with a jurisdiction's consolidated plan
or a community development plan.
   (c) Articles of incorporation filed with the Secretary of State,
stating that the organization is incorporated for the purposes
specified in subdivision (b) of Section 3772.5.
  SEC. 11.  Section 3807.3 of the Revenue and Taxation Code is
repealed.
  SEC. 12.  Section 3807.5 of the Revenue and Taxation Code is
repealed.
  SEC. 13.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
are the result of a program for which legislative authority was
requested by that local agency or school district, within the meaning
of Section 17556 of the Government Code and Section 6 of Article
XIIIB of the California Constitution.
